I am a reporter on the Forbes Wealth team. Having a background in economics and finance, I spend the majority of my time evaluating individuals for our annual World Billionaires and Forbes 400 issues. From grocery stores to medical devices and toys to rare artifacts, there is one thing every billionaire knows...it's all about the Benjamins.

Why My iPad Will Never Replace My Xbox

After the launch of the new iPad, I have read numerous articles (like this and this) discussing how Apple, after cannibalizing both the music and movie industries, now threatens one of the fastest growing industries of my generation: video games. With more than $25 billion in sales last year (hardware, software and accessories combined), the video game industry has already proven to be a lucrative feeding ground for Apple developers. Apple and Android now reportedly comprise over 50% of the mobile games market, overtaking Nintendo’s DS last year, in what has become a more than $3 billion segment of the industry while still in its infancy. This goes well beyond mass-appealers like Angry Birds and Cut The Rope, as companies are starting to target ‘hardcore’ gamers through titles such as Infinity Blade I and II as well as a handful of Call of Duty derivatives. While it is certainly true that these games command hours of attention from even the most devoted Xbox 360 and PS3 players, I have seen numerous Apple enthusiasts declaring that the iPad will actually REPLACE console games entirely, citing the device’s new screen and processor as the primary reasons.

This is simply laughable.

I am not saying that the screen is not exquisite, or that the processor is not powerful, just that these two factors do not constitute a “premier gaming device” by themselves. No doubt the iPad has dramatically impacted the game industry, as it has spawned a new demographic of gamers by drawing in a generation of individuals who never gamed before. However, acknowledging this, I still believe the iPad will forever remain inferior as a gaming platform to more serious, hardcore players.

Before I go into my justifications for this, let me highlight why I think I am qualified to be making this assessment. I am a big Apple fan, toting a 4s as well as an iPad equipped with over 75 games (I got an Apple gift card for my birthday, alright?) so I think it is fair to say that I have tested the majority of premier games out there and seen the lion’s share of the engines currently available on iOS. That being said, I have also spent countless hours on my Xbox 360, reaching level 50 in Halo 3, a rank of Legend in Halo: Reach and attaining 8th prestige in MW3. These accomplishments are in addition to a large range of other arcade and platform games I have played on Xbox 360, PS3 and Wii.

1. History and culture of gaming

Let’s face it…anyone who calls themselves a gamer is already shaking their head at the fact that I even have to make this list. First off, the console is so deeply rooted in gaming history that I truly believe it will never be ousted. The console itself has seen dramatic changes, particularly in the last 5 years, which have made it a necessary piece of any complete home media center. Obviously, the iPad is more expansive in its features, and yes, you can take the iPad anywhere…but the whole concept of the media station or ‘cave’ if you will, has become a staple of modern gaming culture. Part of the experience is having that favorite chair or couch or seat with joysticks attached from where you take on the world. This idea of complete immersion that has come with the significant advances in gaming development is lost on the iPad, and it is something that a lot of dedicated gamers value.

The need for multiplayer functionality is also vital to the success of any gaming platform nowadays, and the iPad is seriously lacking in this regard. Not only the technical ability to play against other people, which Apple is remedying through a new technology, but the social aspect as well. You and your friends, sitting in a semi-circle within punching distance of each other all staring at the same screen experiencing emotions collectively…this is something the iPad cannot replicate. Even if in a few years there are advances in multiplayer gaming on the iPad, players in the same room still have to stare at their own individual screens. It is just not the same.

2. Retina shmetina

My biggest gripe with those who proclaim the iPad’s oncoming dominance is how the retina screen alone should qualify the iPad as an elite gaming device. The iPad has 1 million more pixels than my HDTV, but am I going to mount it to the wall and sit around it with my friends? My Xbox360 can only project its images in 1080p at best, and while my iPad is undoubtedly sharper, the difference is relatively insignificant. In fact, if you were to stream content from the new iPad to an HDTV via Apple TV, the best attainable quality is also 1080p, negating the impact of the retina screen entirely. I would even go as far as to say in terms of important game features, graphics do not supersede playability, story, or character development. Graphics are obviously up there, but they are not the be-all end-all. It is a step in the right direction, but by no means will better graphics singlehandedly dictate which platform takes the cake…unless of course it is revolutionary, like the leap from SNES 16-bit to N64 64-bit graphics.

Even with popular role playing games, such as Infinity Blade II and Dungeon Hunter II, iPad games can only go so deep. As the device is meant primarily to handle a host of other functions, games aren’t designed to be a intricate as those on consoles, and thus the length of the story is limited (hence the current prevalence of fun, simple physics, puzzle and social games). This presents a problem for those who enjoy RPG’s, as replaying the story over and over gets redundant…and this is coming from a guy who played Infinity Blade 2 until I got every weapon, including the blacked-out ones, and Dungeon Hunter 2 until I got 2 characters to level 100. Imagine games like Azura’s Wrath on the iPad. They might look brilliant, but they would have to be cut to conform to the platform, eliminating some of what attracts a lot of gamers to these titles. I for one might think twice about spending $10 – $15 on an app that only has 2 hours of story compared to a full-length 20 hour game for $60 bucks on my PS3. I think most hardcore gamers would agree. Not to say these apps wouldn’t be enjoyable…just limited.

As many hardcore gamers are diehard fans of classic MMOs, the lack of compatibility for this genre also inhibits the iPad from becoming a true force in gaming. While there are currently decent forms available in the app store, i.e. Pocket Legends and Order and Chaos Online, they are seriously lacking in comparison with traditional titles for the PC, and even if the games improve over time, developers will have a hard time maintaining the complexities players are used to on other platforms. The games will also still be limited by the controls available on the iPad (see the next section.) Consider the MMORPG-ers out.

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I think where you are wrong – I am surprised more people are not writing about this- is the AirPlay functionality. Once this gets optimized (I.e. lag reduced), it will completely destroy console gaming. The ability to have your iPad or iPhone become the controller, or HUD, or motion sensor and simultaneously have the game running on your big screen is the ultimate blow to the consoles. That’s not even to mention that you can take the game with you wherever you go. This was my huge revelation as I was watching Apple unveil the new iPad and the latest OS.

Plain and simple, Apple is literally a few programming cycles away from making the console obsolete.

It will be interesting to see if the improvement of AirPlay does actually affect interest in console games. I think in order for it to actually make an impact there will have to be games allowing multiple (hopefully more than 4) people play at one time, each using their own iPad either from their own house or together under one roof. I have yet to hear of any myself…No doubt it will affect more traditional board games and turn-based games, but as for the hardcore titles i still feel as though the lack of responsiveness of the iPad as a controller limits the entire system.

That’s just wrong and consoles aside the PC absolutely destroys the ipad in every possible way except portability. But most gamers dont care about portability, they’re not looking to play bigger name games on the go. The more intense and in depth games arent practical to play on the go because of the amount of hours they require. And the reason Apple can never replace consoles is the lack of developer support, it’s actually what’s kept consoles from being completely replaced by PC gaming despite it’s technical superiority.

Exclusives are a powerful asset in gaming and carry much of the brand loyalty consoles enjoy. As long as franchises like Mario, Halo, God of War, and many many others exist consoles will remain very very relevant. Apple is not going to magically steal away all of these people who have been doing business with Nintendo, Sony, and Microsoft for a significant period of time. Not to mention that Apple has a terrible reputation among harder gaming circles due to their overpriced and shoddily made hardware.

Sorry, but using the iPad as controller doesn’t sound workable to me. Lacking the tactile sensation of keys, joysticks, buttons, etc is just too much of a drawback. It’s impossible to play quick and precise without that. Now, if you created a controller that synced up with iPad while the iPad was throwing the game onto the big screen, I could see that working.

I believe that all of your arguments are solid and hold water. But I think you missed the vision of those who would debate you. They aren’t picturing an XBox being replaced by the iPad gaming experience as it exists today. They are envisioning a future in which the iPad gains the ability to throw the graphics onto the bigscreen TV (perhaps via AirPlay) as well as the ability to talk to external controllers (perhaps via the new Bluetooth protocol). I honestly don’t see what technical hurdle would absolutely prevent the iPad from being able to someday become a portable XBox machine, at least as far as the gaming aspect is concerned (which is the one you are calling out in this article). Apple obviously wouldn’t try to emulate the other capabilities of XBox (like playing physical disks or tie-ins to Microsoft network stuff). However, Microsoft would likely be allowed to make its own app which could do all these things (and more).

Pretty much every one of your (valid) arguments could be addressed by this vision of where the iPad may be headed. That’s why you should never say “never”.

Apple has approximately twice the market cap of Microsoft and lots of cash on hand. If they want to they can easily crush the Xbox. Sony and Nintendo are even worse off. (about 1/10th of MS market cap for each). Even Facebook has 5x the market cap of either Sony or Nintendo.